Is this the end of GameStop's stock saga? Bay Area tech experts weigh in as shares collapse
SAN FRANCISCO (KGO) -- It's been another rollercoaster ride for GameStop's stock, closing at just over $90 Wednesday. That's a drop of about 80% from its peak, less than a week ago.
The surprise story of 2021 saw everyday investors use the power of technology to take on giants of Wall Street.
RELATED: Why GameStop's stock surge is shaking Wall Street
"I think that today marks kind of the moment of maybe some people get disillusioned who were involved in this," said Ian Sherr, editor-at-large at CNET.
Sherr's read on GameStop closing at just under $100 on Wednesday, far below the dizzying heights it reached just a week ago.
RELATED: Big Tech leads stocks to broad gains; GameStop collapses
While he doesn't think this is the end of this spectacular David vs. Goliath story, he says it's a reality check.
"I think a lot of people thought that this was going to be a much easier fight against Wall Street than it's become," said Sherr.
SJSU professor Ahmed Banafa sees a bigger story, outside just the ups and downs of GameStop's stock. He sees a trend that could be here to stay.
"This kind of bringing the stock market to your phone is really a novel idea," he said, " "Number one is an opportunity for other apps to mimic and copy what Robinhood did this is a very good opportunity for them."
RELATED: Wall Street's GameStop bug may have mutated as silver prices surge
Robinhood is the commission-free investing app that's been central to the GameStop story, along with the Reddit thread that gathered investors together to help the stock surge.
Sherr has been keeping an eye on the forum and he says the chatter shows that clearly this story is far from over.
"It's very clear that the Wall Street bets crew, the people who are on Reddit, they are not done holding on to their shares," said Sherr.
Banafa remembers the dotcom crash of the late 90's, says he sees a lot of similarities with GameStop's story and encourages new investors to proceed with caution.
"Definitely, there'll be some people who are going to make tons of money out of this there is no question about it, but they're gonna make money because other people are losing money," said Banafa.
